Business
Business, 26.08.2019 21:20, lizzyhearts

Hanson, inc makes 1,000 units per year of a part called a "prositron" for use in one of its products. data concerning the unit production costs of the prositron follow: direct materials $342 direct labor 80 varible manufacturing oh 48 fixed manufacturing oh 520 total $990 an outside supplier has offered to sell hanson, inc. all of the prositrons it requires. if hanson, inc. decided to discontinue making the prositrons, 10% of the above fixed manufacturing overhead costs could be avoided. required: assume hanson, inc. has no alternative use for the facillities presently devoted to production of the prositrons. if the outside supplier offers to sell the prositrons for $850 each, should hanson, inc accept the offer? fully support your answer with appropriate calculation.

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